Effect this measure will have on costs and revenues of state government.

The stated purpose of this bill is to extend the moratorium on the regular severance tax on the privilege of severing timber until such time as the additional Workers Compensation Debt Reduction Act tax on the privilege of severing timber expires.

According to our interpretation, passage of this bill would discontinue the Severance Tax on timber levied via W. Va. Code §11-13A-3b until the sunset date of the Workers Compensation Debt Reduction Act. The bill would result in reductions in the Division of Forestry Severance Tax Operations Fund of roughly $1.0 million per year from FY2013 until the sunset date of the Workers Compensation Debt Reduction Act.

Additional administrative costs to the State Tax Department associated with this bill would be minimal.

Fiscal Note Detail

Over-all effect

Effect of Proposal

Fiscal Year

2012Increase/Decrease(use"-")

2013Increase/Decrease(use"-")

Fiscal Year(Upon FullImplementation)

1. Estmated Total Cost

0

0

0

Personal Services

0

0

0

Current Expenses

0

0

0

Repairs and Alterations

0

0

0

Assets

0

0

0

Other

0

0

0

2. Estimated Total Revenues

0

-1,000,000

-1,000,000

3. Explanation of above estimates (including long-range effect):

According to our interpretation, passage of this bill would discontinue the Severance Tax on timber levied via W. Va. Code §11-13A-3b until the sunset date of the Workers Compensation Debt Reduction Act. The bill would result in reductions in the Division of Forestry Severance Tax Operations Fund of roughly $1.0 million per year from FY2013 until the sunset date of the Workers Compensation Debt Reduction Act.

Additional administrative costs to the State Tax Department associated with this bill would be minimal.